MORTON INDUSTRIAL GROUP, INC.

MORTON INDUSTRIAL GROUP, INC.

Previous company name
MLX CORP
Name change date
8/23/1996
Company Overview
Morton Industrial Group, Inc, with registered office address in Morton, is a US-based private company engaged in the manufacture of fabricated metal products. The company operates the Morton Metalcraft Co, a company involved in the supply of fabrication products.
The group is specialized in the manufacturing of engineered metal components and subassemblies which are used by construction, agricultural, industrial, and recreational vehicle original equipment manufacturers (OEM’s). Morton supplies a wide variety of metals including turf care equipment, engine enclosures, cabs, wheel loaders, power generators, platforms, panels, frames and complex weldments. These products are used in motor homes, excavators, tractors, similar industrial equipment and backhoes. Its serves to customers that include Deere and Co, and Caterpillar Inc.
Morton Industrial operates more than five manufacturing facilities located in the Midwestern and Southeastern United States. In March 2006, the group entered into an agreement and plan of merger under which MMC Precision Merger Corp. (Merger Sub), a wholly owned subsidiary of MMC Precision Holdings Corp., will merge as a direct wholly owned subsidiary of Parent.
Business Summary
Morton Industrial Group, Inc. is a contract manufacturer and supplier of fabricated sheet metal components and subassemblies for construction, agricultural and industrial equipment manufacturers located primarily in the Midwestern and Southeastern United States. The Company’s products include engine enclosures, panels, platforms, frames, tanks and other components used in backhoes, excavators, tractors, wheel loaders, power generators, turf care equipment and similar industrial equipment. These products are typically highly engineered, cosmetically sensitive, require structural strength and contain complex weldments. On March 22, 2006, Morton Industrial Group, Inc. entered into an agreement and plan of merger under which MMC Precision Merger Corp. (Merger Sub), a wholly owned subsidiary of MMC Precision Holdings Corp., will merge with and into the Company with the Company being the surviving corporation and a direct wholly owned subsidiary of Parent.
Description and history
Morton Industrial Group, Inc. is a contract manufacturer and supplier of fabricated sheet metal components and subassemblies for construction, agricultural and industrial equipment manufacturers located primarily in the Midwestern and Southeastern United States. The Company’s products include engine enclosures, panels, platforms, frames, tanks and other components used in backhoes, excavators, tractors, wheel loaders, power generators, turf care equipment and similar industrial equipment. These products are typically highly engineered, cosmetically sensitive, require structural strength and contain complex weldments. Morton Industrial Group, Inc. ‘ largest customers include Deere & Co. and Caterpillar Inc., which together generated 91% of the net sales during the year ended December 31, 2005. On March 22, 2006, Morton Industrial Group, Inc. entered into an agreement and plan of merger (merger agreement) under which MMC Precision Merger Corp. (Merger Sub), a wholly owned subsidiary of MMC Precision Holdings Corp. (Parent), will merge with and into the Company with the Company being the surviving corporation and a direct wholly owned subsidiary of Parent.

Sheet Metal Fabrication

The Company’s sheet metal fabrication capabilities include laser and plasma cutting, forming, punching, welding, painting and assembly processes. Its sheet metal fabrication processes operate on information created by CAD/CAM software, utilize optic laser cutting machines to cut parts at high speeds and use robotic welders to complement manual welding operations. The Company’s painting operations are capable of producing a variety of paint finishes required by customers. Fabricated sheet metal products offered by Morton Industrial Group, Inc. include sheet metal enclosures and boxes, special weldments, fabricated steel tanks, sheet metal component packages and store fixtures.

To customers in the construction equipment market, Morton Industrial Group, Inc. supplies metal components and subassemblies, such as engine enclosures, platforms, frames and complex weldments. The Company’s customers use these products in backhoes, excavators, wheel loaders, skid-steer loaders, lifts and similar construction equipment. Construction equipment products accounted for approximately 64% of the Company’s 2005 net sales.

Morton Industrial Group, Inc. produces a range of components and subassemblies for equipment used in a variety of industrial applications, including store fixtures, motor homes, turf care equipment and power generators. Customers in the industrial equipment area generally serve stable or growth markets, and these customers include Caterpillar, Deere, Kubota, Hallmark, Winnebago and JLG Industries Inc. Industrial equipment products accounted for approximately 19% of the Company’s 2005 net sales. To customers in the agricultural equipment industry, Morton Industrial Group, Inc. supplies metal components and subassemblies, such as steps, grills and landing decks. Agricultural equipment products accounted for approximately 17% of the Company’s 2005 net sales.

Services

Morton Industrial Group, Inc. provides design, development, analysis and costing for its products. The Company prefers to and often works with customers in the early stages of designing their products. It also provides prototyping/tooling services, which include prototyping, tooling and pre-production steps in the manufacturing process. The Company’s dedicated prototype and tooling departments work with customers throughout development efforts, allowing for a smooth introduction of new products.

The part decorating and exterior finishing service category includes a number of decorating operations, such as liquid and powder coat painting and decal application. The just-in-time delivery service category includes providing customers the ability to order products in low lot sizes with minimal lead time enabling them to reduce their overall order cycle time. Morton Industrial Group, Inc. also provides deliveries that are specially sequenced to customers’ manufacturing schedules.

The Company’s computer-aided design capabilities include Pro/ ENGINEER, Anvil 1000/5000, Apollo, Merry Mechanization and CADKEY. Morton Industrial Group, Inc. has focused its computer-aided design investment on the Pro/ ENGINEER system because Pro/ ENGINEER is the preferred system of the majority of its customers. Computer-aided design allows the Company to download completed and approved designs directly to production equipment in most plants. The resulting direct interaction between customers’ designers and the Company’s engineers facilitates joint development of new components and redesign of old parts. Morton Industrial Group, Inc. also uses computer systems to provide performance measurements of shop floor quality and activity, daily actual cost information for each factory, electronic data interchange with major customers, real-time dispatching of work orders, integration of purchasing information with production scheduling, capacity management and inventory information.

Business Line
Manufacturing of engineered metal components and subassemblies which are used by construction, agricultural, industrial, and recreational vehicle original equipment manufacturers (OEM’s)
Subsidiary
MORTON METALCRAFT CO. OF NORTH CAROLINA
Advisor
KPMG LLP
IPO date
5/5/2004
US SIC Code
3499
Company Address
1021, W. Birchwood

City province or state postal code
61550, MORTON, IL
Phone: +1 309 266 7176
Fax: +1 212 888 2598
Country address: UNITED STATES OF AMERICA
Website url: www.mortongroup.com